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"Calls to our customer service have decreased"

Telenor wanted to reduce the number of returns and get an overview of the logistics chain. The solution was to use in-depth statistics and a service that automatically sends reminders.

Challenge

Returns due to customers not picking up their phones in time before they are returned.

Creating an overall picture of the logistics flow.

More efficient deliveries and returns management.

The cell phone market is highly competitive and it is important that every phone that is sold reaches the customer quickly, rather than just being held at a service point. For Telenor Sweden, which sends thousands of parcels a day, this is absolutely crucial.“A phone stuck on the shelf is equivalent to a lost sale to another customer. Phones that are sent back incur costs for shipping, warehousing and customer service, amounting to around SEK 500 per parcel,” says Telenor Product Manager Mikael Gustavsson.To improve its deliveries, Telenor needed to get an overview of the logistics chain. How many parcels arrive on time? How many recipients choose Collect In store rather than collection from a partner outlet? How satisfied are customers with their deliveries via service point?“We lived in a gray world before we started working with delivery information, but if you want to make improvements you have to understand the entire chain.”

"Calls to our customer service have decreased"

Solution

Together with PostNord, Telenor developed the function Track & Trace Premium inside the Customer portal, which can be described as providing proactive delivery monitoring. The system sends automatic reminders to customers who have not yet collected their parcels.“Customers receive a Telenor-branded text saying “Don’t forget that you have a parcel to collect” two days after it is ready for collection and then again after five days,” says Mikael Gustavsson.At the same time, Telenor began working with dashboards via PostNord’s customer portal; these provide detailed monthly delivery statistics. “This gives us the chance to follow the parcel’s journey and calibrate our activities based on the information we receive,” he explains.In order to further streamline its operations, Telenor has also outsourced its warehouse management to PostNord TPL, which packs and sends parcels, receives returns and handles complaint claims.

Impact

Reduction in returns and fewer calls to customer service.

Better overview of both delivery reliability and customer satisfaction.

Increase in efficiency in the entire logistics chain.

The results have been immediate. Already two months after the implementation of automatic reminders, Telenor has noticed a significant reduction in the number of parcels being sent back. This amounts to savings of around SEK 150,000 a month straight away.The in-depth statistics via dashboards have given Telenor a sort of map, on which they can see in real time how different choices affect the business. As well as knowledge about how customers experience their deliveries.“For example, we can see if customers are more satisfied with home delivery than with collecting parcels from stores. It is incredibly valuable data, which helps us choose the right approach,” says Mikael Gustavsson.PostNord’s TPL service saves both money and time for Telenor, which can instead focus on selling telephones.“As PostNord manages our stock, we have been able to establish a later picking time, which means we can process more orders each day. These are minor things the make the entire process more efficient and we become stronger.”

Facts Telenor

General: Telenor Sweden has more than 2.6 million cell phone subscribers, 670,000 broadband customers and half a million TV customers. Market: Nordic region, Central and Eastern Europe and Asia. Employees: Around 1,700 in Sweden, 33,000 in the Group.